 | Lee H. Shidlofsky on the Notice-Prejudice Rule: PAJ, Inc. v. Hanover and XL Specialty v. Financial Industries Corp.
In Texas Calculus, does PAJ + XL = Prejudice? Recent action by the Supreme Court of Texas may provide the answers. The notice-prejudice rule is a nationwide trend whereby an insurer is sometimes forced to prove that it was prejudiced by an insured’s failure to timely notify it of a claim or lawsuit before the insurer can preclude coverage. On January 11, 2008, the Supreme Court of Texas issued an opinion on the matter in PAJ, By Lee Shidlofsky
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